- Japan’s top financial regulators are seeking to approve the first spot crypto ETF in two years.
- Nomura Holdings and SBI Holdings are among the firms in the country expected to launch crypto ETFs.
- Japan ranked among the top 20 global nations in crypto adoption in 2025 according to Chainalysis.
Japan is poised to have its first spot crypto exchange-traded funds (ETFs) in 2028. According to a report from Nikkei, Japan is seeking to follow the United States in regulating the crypto market to catalyze mainstream adoption and increase its tax collection.
Japan Regulators Eyes Spot Crypto
According to the report, the Financial Services Agency (FSA) plans to add cryptocurrencies to its list of assets eligible for ETFs as early as 2028. The report noted that the FSA is seeking to strengthen the cryptocurrency rules in the country in order to protect investors.
The approval of the spot crypto ETFs will start with the top digital assets led by Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Dogecoin (DOGE). Several financial groups in the country, led by SBI Holdings, have been engaged with the cryptocurrency industry in the past.
The rising demand for digital assets in Japan has pushed the FSA to signal its willingness to add crypto to ETF lists. As such, several spot crypto ETFs will be listed on the Tokyo Stock Exchange (TSE) in the subsequent years.
Related: Bank of Japan Holds Rates at 30-Year High as Debt and Yen Risks Loom for Crypto
Why Now?
Japan has closely followed the United States in the regulation of crypto assets. Furthermore, the United States has several crypto ETFs trading, with Bitcoin’s boasting more than $113 billion in total assets.
Under President Donald Trump, the United States has expedited the legalization of crypto assets. For instance, the U.S. Securities and Exchange Commission (SEC) removed barriers for approving spot crypto ETFS through adopting the generic listing standards in September 2025.
The Japanese and U.S. authorities have collaborated in boosting their economies. For instance, Japan’s Finance Minister Satsuki Katayama welcomed the decision by the U.S. to buy the Yen through the Federal Reserve Bank of New York.
Bigger Picture
Japan has grown into a crypto hub in Asia through clear regulatory frameworks. According to Chainalysis’ global crypto adoption index for 2025, Japan ranked 19, which is higher than China at 35 but lower than Russia at 10 and South Korea at 15.
The FSA has defined Bitcoin and Ethereum as digital assets, thus regulated under the Payment Services Act (PSA). As such, crypto businesses seeking to operate in Japan must be regulated under the strict rules of the FSA.
Meanwhile, the FSA is planning to review and submit a bill to the parliament in 2026 to introduce changes to crypto regulations. Earlier, the FSA planned to amend the current progressive tax rate on individual crypto gains, which can reach 55%, to be replaced by a flat tax rate of about 20%.
As such, the FSA will help attract more institutional investment in Japan, to boost economic growth.
Related: Arthur Hayes: Bitcoin “Very Bullish” If Fed Expands Balance Sheet via Yen Support
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